Urban Outfitters founder returns to birthplace of popular chain

While Urban Outfitters may trigger memories of such T-shirts as "I'm a pepper" and "Everyone loves a Jewish girl," the store has a much stronger connection to Penn: the chain's history is strongly intertwined with the campus.

In a talk organized by the Wharton Retail Club, Urban Outfitters Chairman and President Dick Hayne revealed the consistent business philosophy and methodology that propelled the company forward. The company now includes not only the Urban Outfitters retail branch, but also the chain Anthropologie as well as wholesale brand Free People.

With its bright colors and divergent selection of products, the store is often associated with a random but chic, laid-back quality. This free-spirited appearance, however, is the result of deliberate managerial efforts that are anything but random.

In the 1970s, Hayne teamed up with Wharton alumnus Scott Belair to create Urban Outfitters, which Belair used to fulfill a class project. The first store, which was then called Free People's Store, was located at 4307 Locust St., next to Koch's Deli.

Also a member of the partnership was Hayne's wife, Judy Wicks, who later on founded the White Dog Cafe. Wicks and Hayne later divorced.

This connection to Penn made the talk all the more "fascinating," according to Wharton junior Elizabeth Schweitzer.

The University City neighborhood, Hayne remarked, gave his new business excellent opportunities, as it was populated by almost 40,000 students with virtually no other competitors at that time.

Hayne attributed the success of Urban Outfitters to the application of "visual merchandising" -- the hiring of special teams of creative artists to furnish the store environment with a look and feel appropriate for its products.

College sophomore Katie Barnett, was impressed by this deliberate action since it was consistent with her observation of the retail stores.

Among other issues discussed were the apparel retailer's entry into the European market, the founding of Anthropologie, the company's future direction and its view on social responsibility.

Audience members asked about Hayne's view on hiring labor in poorer developing countries, to which he responded that he believes in capitalism.

Hayne stated that the company avoided "sweatshop" factories to the best of its ability and opted for working conditions that were "fair from [the local] standards." Essentially, however, he believed that no matter the working conditions, "buying from [these laborers] makes [their] lives better."

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